Calculating rates of return on February 2 , 2016 an investor held some province of Ontario stripped coupons in a self administered RRSP at scotia Mc Leod , an investment dealer. Each coupon represented a promise to pay $ 100 at the maturity date on January 13 , 2022, but the investor would receive nothing until then . The value of the coupon showed as $ 76.04 on the investor screen. This means that the investor was giving up $ 76.04 on February 2, 2016 in exchange for $100 to be received just less than six years later.

a based upon the $76.04 price what rate was the yield on the province of Ontario bond?

b suppose that on February 2 , 2017 the security price was $ 81.00 if an investor had purchased it for $ 76.04 years earlier and sold it on this day what annual rate of return would she have earned ?

c if an investor had purchased the security at market on February 2 , 2017 and held it until it matured what annual rate of return would she have earned?